Sino Agro Food Inc (fka SIAF)

[ks1977]

Im very confused right now

Speculations can lead to that I'm not saying that RDs speculation is way of, it is certainly a possibility, but I do classify it as speculation;

Solomon has through 2017 said, over and over again, that he will distribute half of SIAFs 36.6% ownership in TRW, and in the same breath said that he will distribute 18.3%. Solomon has never, ever, said that SIAF will increase its stake beyond 36.6%, or said that SIAF will retain 36.6% after the distribution. Hence, from what the company has communicated, SIAFs ownership in TRW will be reduced to 18.3% after the distribution.

So, you have to read between the lines to get to the possibility that SIAF might retain 36.6% ownership in TRW after the distribution. That does not mean that it is not a possibility (it would make sense for TRW since TRW owes SIAF a lot more than what is settled with the 36.6%), but should be classified as speculation in my opinion.

If the speculation turns out to be true, then Solomons influence in TRW will indeed increase from an acceptable ca 20% to a more uncomfortable ca 40% (36.6% + 10% or whatnot of the 18.3%). He does not have any a-shares in TRW though, and he will still not have the majority. Hence he will need to be able to persuade the other large owners if he wants to dilute or whatnot. Although 40% would be uncomfortably high.